The bond market may need to calm down before stocks make a meaningful recovery

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For any kind of sustained recovery in risk markets, one would think bond-market volatility would have to ebb from seriously elevated readings in recent months.

The ICE BofA Move Index is effectively the VIX for Treasury markets, and now shows the extremes of a fast-moving Fed, high-stakes inflation data near multidecade highs and illiquidity after bonds have delivered awful year-to-date performance. Only getting closer clarity on the Fed's destination and calmer inflation numbers will settle things down, most likely.

Energy stocks a standout as crude firms up, after reports the Biden administration might use forward purchases to refill the SPR and place a quasi-floor on prices to incentivize steadier production. Equal-weight S & P continues to outpace the largest, growth-iest stocks. The leaders of the last boom rarely repeat as leaders of the next. Most of the valuation premia in stocks remains clustered in the huge-cap realm. As noted, market breadth is evenly split.

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michaelsantoli And they should and likely will. Get one more lower yield higher stock trade before true risk off move

CNBC spins it positive and not that stocks have to crash to catch up with bonds. This crap is non stop on this flea bag channel

michaelsantoli You’re doing a lovely job….love your commentary on market.I find it invaluable…however u had 5 people on the day before the 1200 point sell off…(all bullish)I disagreed with all (thank god) …I had a great day …you should present alternative view more often

But people escaped from stock market have to find a place to park money

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